Trading timeframe

General topics about Forex trading

Trading timeframe

Postby User » Thu Jul 09, 2009 8:11 pm

Forum transfer: Submitted by darkside on June 16, 2007 - 19:30.


Here is a question: which time frame proved more profitable for you> 15min, 1 hour, daily... etc? Currently, I am experimenting with systems on a daily timeframe because I work regular job and cannot trade Forex during work (obviously). Does any of you have the same problem and how do you deal with it?
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Re: Trading timeframe

Postby User » Thu Jul 09, 2009 8:12 pm

Forum transfer: Submitted by Forex trader on June 17, 2007 - 09:21.

My example, I trade for 2 years already and I "graduated" from scalping on 5 min charts in my first 2 months of trading, tested 15 min charts for about 3 next months, then moved to hourly, 4 hour and a year ago I realized that (imo) you can trade well only on daily charts!
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Re: Trading timeframe

Postby User » Thu Jul 09, 2009 8:12 pm

Forum transfer: Submitted by Rich on June 18, 2007 - 12:54.

It depends on how much you need to earn to call it a profit. For some, say, 15 pips a day is a profitable trading and they scalp happily, while others having 15 pips a day call it a wasted day and time... So, it is quite difficult to judge timeframes profitability, unless we talk about a specific strategy and its performance on the different timeframes.
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Re: Trading timeframe

Postby User » Thu Jul 09, 2009 8:13 pm

Forum transfer: Submitted by User on September 22, 2007 - 13:11.

Hourly charts are most common choice and actually a lot of indicators respond well and in time to hourly charts.
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Re: Trading timeframe

Postby User » Thu Jul 09, 2009 8:13 pm

Forum transfer: Submitted by Thexder on September 26, 2007 - 01:05.

And hourly charts also may be good time frames to switch to for good response of indicators when trading on higher time frames. A daily trading system may benefit from standard indicators on the hourly to turn a lagging indicator into a now leading indicator! So that is one benefit of using higher time frames with some lower time frames available to use for confirmations.
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Re: Trading timeframe

Postby User » Thu Jul 09, 2009 8:14 pm

Forum transfer: Submitted by Ted on September 27, 2007 - 21:11.

Absolutely agree with that.
A method of cherry picking trades by using smaller time frames is very popular among forex traders.

If you take for example 4 hour charts as primary charts, then to find the best entry you may downgrade to 1 hour chart.
Same can be true when trading daily charts. Once you've got an opportunity and signal on daily charts it is highly recommended to try to look at hourly charts to find out if getting in the trade Here-and-Now is advisable or you could be better off waiting for some time (if the price going against your preferred direction) to get a better chance to start off your trading.

Ted
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Re: Trading timeframe

Postby User » Thu Jul 09, 2009 8:14 pm

Forum transfer: Submitted by User on March 26, 2008 - 18:59.

Daily trading is difficult and requires trader to be willing to carry large losses, but that's not all. How do you know when to exit with daily candlesticks? The decision can be tough, lots of experience and knowledge required to manage daily charts.

That's why starters and less experienced traders come to hourly trading and some find profitability in scalping.
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